Global financial markets' year-end 'final showdown'
Tonight, the eyes of the entire market will be bloodshot! At 8 PM, 9:15 PM, and 9:30 PM, the inflation data from the Bank of England, the European Central Bank, and the United States will be released in quick succession. This is definitely a key night for wrapping up 2025 and setting the tone for 2026.
My view: When these three 'big shots' meet, it's hard for the cryptocurrency market to remain stable! Why? Just look at the current market predictions: the UK economy can't hold up, and there's an 80% chance of interest rate cuts to 'inject liquidity' into the market.
In Europe, the economy shows some resilience, and inflation is sticky. It's highly likely they will 'stand pat', with some even speculating whether they will raise interest rates next year.
Across the ocean in the United States, the November CPI data will have to cover the gap from October, essentially revealing two months of price changes at once. The market generally believes that overall inflation will remain around 3.1%, which is significantly higher than the Federal Reserve's target.
What impact will this excitement have on the cryptocurrency market? One sentence: money flows where it will. If the UK cuts interest rates, the pound may weaken, and in comparison, the dollar may appear strong, putting pressure on risk assets like Bitcoin that are priced in dollars in the short term.
If inflation in the US remains high, the market's fantasy of the Federal Reserve cutting rates next year will have to be discounted. The longer interest rates stay high, the lower everyone's risk appetite becomes, making smaller coins that chase gains the most likely to be hit hard.
So, what should we do tonight? Don’t make rash moves!
Tonight, don’t heavily bet on direction; during such moments of multi-central bank coordination, the volatility can throw you off the train. First, just watch the show!
Hold on to your core positions, like Bitcoin and Ethereum, and don’t get shaken out easily. Observing the market's 'real reaction' to these messages is more important than wild guessing.
Pay attention to the US dollar index, which serves as the 'compass' for global funds; if it surges, the cryptocurrency market will likely tremble.
As tonight's grand performance concludes, the direction will basically be clear. Want to know which sector I think should be positioned for the start of 2026 after interpreting the data? Follow Tianji; Tianji will tell you. In this time of global capital realignment, following the right people is ten times better than guessing on your own!
Follow Tianji; Tianji Village specifically serves ambitious villagers! Become a villager of Tianji, and Tianji will guide you through the market's thorns and thickets.
